We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/Dcr5GWwALW
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.13%, while traders in US 500 are at opposite extremes with 76.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/4CSQjjnnOa
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.01% 🇨🇦CAD: -0.00% 🇦🇺AUD: -0.01% 🇬🇧GBP: -0.04% 🇪🇺EUR: -0.06% 🇨🇭CHF: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYOXemz2Vo
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: France 40: 0.91% Germany 30: 0.90% Wall Street: 0.14% US 500: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/FwJ0kGFDLx
  • #GBP, #NZD and #NOK are expected to be the most-active majors versus #USD with one-week implied volatility at 8.72, 6.68 and 6.57 respectively [delayed] -BBG
  • The #Euro is grinding through support guiding the four-month upswing against the US Dollar, hinting that resumption of the broader downtrend may be around the corner. Get your market update from @IlyaSpivak here: https://t.co/lHhewnDqCf https://t.co/knIYvGF2cr
  • EUR/USD Technical Analysis: Euro Downtrend May Have Restarted - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/01/24/EURUSD-Technical-Analysis-Euro-Downtrend-May-Have-Restarted.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #EURUSD #technicalanalysis https://t.co/AbwUdLh4mt
  • The Japanese Yen has faded into 2020 as market risk appetite has held up and hit demand for haven assets. $USDJPY now challenges a key medium-term downtrend, but hasn’t topped it yet.Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/tkgAOlDdtU
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.06% Gold: -0.10% Silver: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LwLCxnO6eM
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.06% 🇯🇵JPY: 0.03% 🇬🇧GBP: -0.00% 🇨🇦CAD: -0.01% 🇪🇺EUR: -0.03% 🇨🇭CHF: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UT2Vl3reju
Canadian Dollar Price Chart: USD/CAD Breakout Stalls at Six-Week High

Canadian Dollar Price Chart: USD/CAD Breakout Stalls at Six-Week High

2019-08-06 17:00:00
Michael Boutros, Technical Strategist
Share:

The Canadian Dollar is down nearly 2% against US Dollar with USD/CAD rallying to fresh six-week highs on the back of last month’s breakout. Despite broader Dollar weakness, Loonie has remains vulnerable with the immediate focus now on near-term uptrend resistance. These are the updated targets and invalidation levels that matter on the USD/CAD charts this week. Review this week’s Strategy Webinar for an in-depth breakdown of this Loonie trade setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

Canadian Dollar Price Chart – USD/CAD Daily

Canadian Dollar Price Chart - USD/CAD Daily - Loonie Technical Outlook

Technical Outlook: In my latest Canadian Dollar Price Outlook we highlighted the breakout potential in USD/CAD as price was testing multi-month channel resistance. A topside breach / close above the late-March swing low at 1.3250 is needed to keep the long-bias viable targeting 1.3291 ad the 61.8% retracement / May low at 1.3355/57- look for a bigger reaction there IF reached. Monthly open support rests at 1.3190 backed closely by near-term bullish invalidation at 1.3145.

Why does the average trader lose? Avoid these Mistakes in your trading

Canadian Dollar Price Chart – USD/CAD 120min

Canadian Dollar Price Chart: USD/CAD Breakout Stalls at Six-Week High

Notes: A closer look at price action shows Loonie trading within the confines of an ascending pitchfork formation extending off the July lows with price struggling to mount the upper parallel late-last week. Interim support rests at the median-line (~1.3190s) backed by 1.3141/45 - area of interest for downside exhaustion IF reached. Ultimately a break below the lower parallel / 61.8% retracement at 1.3111 would be needed to shift the broader focus lower again.

Bottom line: The USD/CAD breakout remains viable here, but the immediate advance may be vulnerable while below near-term uptrend resistance. From a trading standpoint a good spot to reduce long-exposure / raise protective stops. Ultimately a larger pullback may offer more favorable entries targeting a topside breach of this resistance zone- For now, I’m looking to fade a spike higher. Keep in mind we still have Canada employment data on tap this Friday- stay nimble. Review my latest Canadian Dollar Weekly Price Outlook for a longer-term look at the technical picture for USD/CAD.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

USD/CAD Trader Sentiment

USD/CAD Trader Sentiment - US Dollar vs Canadian Dollar Price Chart - Loonie Technical Outlook
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD - the ratio stands at -1.79 (35.8% of traders are long) – bullish reading
  • Traders have remained net-short since July 23rd; price has moved 0.7% higher since then
  • Long positions are 4.8% lower than yesterday and 31.3% lower from last week
  • Short positions are 4.0% higher than yesterday and 4.5% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USD/CAD prices may continue to rise. Traders are further net-short than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger USD/CAD-bullish contrarian trading bias from a sentiment standpoint.

See how shifts in USD/CAD retail positioning are impacting trend- Learn more about sentiment!

---

Relevant US / Canada Data Releases

US / Canada Key Data Releases - Economic Calendar

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.